What am I responsible to compensate tenants who just moved in?

Question

Hello-  I am new to landlording.  I have tenants who just moved into my condo and are requesting compensation for: (1) repainting (I had to repaint a wall in a different color than they originally saw when I took down my speakers); (2) loud bathroom fans in each bathroom; (3) Ceiling fans that are outdated but functional; (4) wall wiring so that their t.v. does not reveal the wires; (5) fridge filter which admittedly was old and they noted that my flooring has a soft spot but did not request replacement (yet!).  Can someone direct me to a resource of what I am required to "fix" or "compensate".  I would really appreciate it.  --  BTW i own a fourplex with Section 8 tenants and they are not even close to as needy as my higher end condo.  Just an aside.  Thanks again, dave

Dan C. · Answer

@David Lamb If it were me I would briefly allude to the part of the lease where it states they have inspected the premise and find it acceptable, and say I am not interested in paying for these items.  And then I would ignore any email they sent back in response because it is a settled matter and discussing it further is a waste of my time.

Marina Shlomov · Answer

As a property manager, we don't allow tenants to make any modifications to any rental properties. We do explain to them that it's a "rental property" and as managers for the landlord, cosmetic issues will not be addressed as they are not relevant to proper operation of the property. As a matter of fact, we have a tenant who wants something done to the property every single month, until I finally explained to her that we will be more than happy to address functional issues related to the property, but cosmetic issues are off limits. Also, we have set up maintenance policies which make it a lot easier to say "No" as most of the items will be addressed through our maintenance and plumbing policies.

As a landlord, your goal is to make money on your rental property, and there will always be tenants who cross the line. They didn't buy your property, they are just renting it, and yes, you want them to maintain it in good order, it's not their responsibility to improve on the property. If you allow them to make improvements, whether justified or not, it will never stop and you'll end up loosing money on your property over time as your profits will be eaten up by the repair bills.

You are welcome to look on my website under the resident section for more detail information.

I hope that helped to clarify a few points.

Good luck,

Marina Shlomov

Marina ShlomovALH|Podland Realty LLCRental Homes & Property Management
www.alhpodland.com

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Matthew Paul · Answer

Sounds like you are going to have some problem tenants .

Scott Levy · Answer

I think your responses are good and fair.  However, the email from them sounds much better/friendlier than it seemed in the original post!  Sounds like you have good tenants who are more than willing to do some work on their own, which is great!  (If the fans were truly old, I would have probably sprung for new fans too.  Not a big expense and becomes part of the house.)

Good looking condo!

David Lamb · Answer

Here is the email chain of questions and responses (notated by ***).  I also included a few pictures of the condo just for fun.

Okay so this e-mail is a bit over-due but I wanted to make sure we're all on the same page with a couple things regarding the condition of your condo.  - The laminate flooring is sinking and bowing in quite a few places in the hallway and near the kitchen.  Living room is great so I'm curious what's going on with the sub-flooring in the hallway areas.  Also a couple laminate slats in the kitchen show some water damage.

***The installer claims that the floor was uneven.  I had him start again after I noticed it and got the same result.  Something that just has to be lived with.

- Front room screen was ripped in the bottom corner.  I'd be happy to take care of this and if so, please confirm also that you'll compensate for this if you want me to replace it.

***Yes I will pay for screen replacements and have my handyman replace them for you.

- Both bedroom walls and base boards were in bad condition paint wise but as you know we painted everything!  Also working to get the front bedroom bathroom painted with a nice white color and re-routing electrical extension cord for the dryer to source its power from the bathroom outlet instead of the room outlet.

***I saw the picture you sent and it looked very nice.  Our previous emails covered this and the painting issue is resolved.  With regard to re-routing the extension cord, I assume you mean simply plugging it into an existing outlet of your choosing.  I have no issue with that.    - The bathroom fans are annoyingly loud, especially the master bedroom.  Sounds like a WWII documentary just started every time I turn it on.  If I were to buy some new ones from Lowes and install them would you compensate for this?

***I agree that the master bedroom fan is loud.  I will agree to replace it and have my handyman shop around and install it.  The fan in the second bedroom is sufficient and I will not replace that one.

- The living room fan blades are not in great condition.  If I were to buy a nice new fan assembly from Lowes and install it would you compensate for this?  Also, the fan in the master bedroom had a blade with a missing bolt which was causing that blade root to rub against the housing and make a loud noise.  Bought a new 1/4"-20 bolt but can't quite get it screwed in with my tools.  I'll keep trying but let me know if you'd want to get this fan replaced along with the one in the living room.  Looks to be in better condition than the living room fan but I figure you may want to have matching fans.

***The fans are in working condition.  I'm not going to compensate for new ones but I will have my handyman try and assist with the bolt.  Hopefully he has the correct tools.   - DirecTV + AT&T Internet were unable to get the package set up for us.  Something about outdated cabling for the Terraces (Internet).  We wound up going with Cox so we'll go ahead and move your dish/mount/cinder blocks into my storage unit down the street.  Let us know if there's any issue with this

***I have no issue with this.  - Front door keys and locks are quite dated and tough to get the keys to lock/unlock smoothly even after spraying with a bit of WD-40.  Let us know if you'd be okay with us getting new locks and installing them.  We would of course send you a key.

***Keys and locks are in working order.  I'm not going to compensate for new ones but have no objection if you would like to install new ones but if you opt for that please do send me a copy.  - We're having a home audio company come in this Tuesday to mount our TV above the fireplace and install wire concealment ports.  Let us know if you'd be willing to compensate a bit for this as I think it adds some modern touches to complement the electrical outlet already installed above the fireplace.

***Plugs are in working order.  I am not willing to compensate for concealment ports.  However, I will tell you that I actually did what you are referring and there is wiring already contained in the walls.  If you choose to go that route, it may be helpful.

- Do you know how to change the water filter for the fridge?  Just want to get a fresh filter installed. The water valve needs to be shut off and the water filter replacement number is 5231JA2002A.  I will compensate you for a replacement filter as it was in need of replacement when you moved in. ***I will have my handyman talk to you about this.

I think that's it!  Please give me a call if you'd like to discuss any of the above in further detail.  We're very grateful for the opportunity to rent your beautiful condo and look forward to some great times here!  BTW we went to Blue Water for some seafood today...wow wow you were right.  Definitely going to make that a go-to spot.

***

David Lamb · Answer

Thank you all so very much for your feedback.  I have read each and every one and I am learning a lot and suspect I will continue to learn and promise to do the same for a newbie once I am learned in the world of investments.  --  A little more background for those who care to read:  The lease was supposed to start on the 1st but they requested to move in on the 28th so they could utilize the weekend.  I informed them that I was not done cleaning but would give them the option to move in early (no charge) if they wanted to take as is.  They agreed and then promptly complained that it was not clean.  haha.  Other than the walk through to look at the condo there was no other official walk through.  We agreed that they could move in and then give me a list of things that were not working properly (for deposit purposes).--  I have agreed to replace the filter for the fridge (Thank you Wes) and to replace one of the bathroom fans (to be purchased by me and installed by my handyman). I had already credited them $100 for painting because when I removed my speakers the walls needed repainting and I did not have the exact color match.  I'm not sure what is required but I felt bad that there were patch colors all over the place which were not visible when I did the initial showing.  -- Anyways, waiting to hear back from them and promise to update for those interested.  Thank you all again very much.  I am so pleased to have found this site. Dave

Scott Levy · Answer

@David Lamb, I have 7 SFH rentals and agree with the feedback above about what you would be obligated to cover.  However, sometimes the requests are worth paying for just to start a good relationship with a new tenant.  A little goodwill can go a long way to a happy (long-term!) tenant, especially if you are making it clear that you are going beyond what the lease requires you to do.  Maybe could offer to split some of the costs with them or give them a flat allowance to take care of what they want and then the rest is theirs?  Spending a couple hundred bucks to have happy tenants who don't call you every time the wind blows and/or are happy in the house and renew is certainly worth it in my experience.

In any case, will you post back and let us know what ends up happening?

David Lamb · Answer

Wow thank you Sky and Wes, I really appreciate your responses.  You both confirmed what I thought and have written my tenants a response based on your advice.  THANK YOU AGAIN

Wes Brand · Answer

I'd probably pay for the fridge filter since it's a maintenance issue with the fridge (you should probably be replacing that regularly anyway if you want it to last). You're still not responsible for it, however, unless you made yourself responsible in your lease. I wouldn't pay for any of the rest. Loud bathroom fans, paint, and hiding the TV wiring in the wall are completely optional -- it does not change habitability and it doesn't make anything last longer.

Sky Mikesell · Answer

If they did this work with out your knowledge or authorization it was done on their own accord. you are under no legal obligation to reimburse them for crap.  now if a water heater had gone out and they called you for 3 days straight and you ignored them then they would have a compelling case.  that said my experience is in the interest of keeping the tenants happy you could negotiate it out with them informing them they did not get your approval and you would not have approved any of those things or you would have got your own repair team to get it done much cheaper..  then again you are in california where the tenants are always right :) good luck.

What am I responsible to compensate tenants who just moved in?

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